NY Empire State manufacturing index contracts again

Manufacturing activity in the state of New York weakened again in June, according to a survey released on Monday.

The Empire State manufacturing index ticked up 10 points to -6.0 but remained below the zero level.

The survey showed that new orders held steady, while shipments ticked higher. Delivery times shortened somewhat and supply availability - a new monthly indicator now included in the survey - was little changed.

Inventories were flat and labour market conditions remained weak, with employment and hours worked continuing to contract.

Firms were more optimistic about the outlook than they have been in more than two years, however, with the index for future business conditions up 16 points at 30.1. Nearly half of respondents expected conditions to be better in six months.

Richard Deitz, economic research advisor at the New York Fed, said: "Manufacturing conditions remained weak in New York State in June. Employment continued contracting, and capital spending plans remained flat.

"Despite lacklustre conditions, optimism about the six-month outlook rose to its highest level in over two years."